Friday, February 09, 2007

Malaysia's trade breaks 1 Trillion Ringgit mark

What is the big deal of achieving 1 trillion RM in trade? Even if it is USD 1 trillion it does not say much about the Malaysian economy.

We must bear in mind that this figure takes both imports and exports. If we take the exports minus the imports, what do we get? A mere 100 million RM plus. Nothing spectacular. Absolute figures say nothing much. Why don't we compare growth from previous years. This would be more indicative of the rate of growth. Furthermore with the inflated prices of products and commodities due to increased oil prices and therefore inflation, these figures carry even less meaning economic wise.

We also know that with rising population, consumption increases. It goes without saying that the increase is natural for any country. For a developing country like Malaysia, this is nothing to celebrate about.

I ve seen lately that the media has been trying to give a picture that the economy is doing well under AAB. It takes the figures of 1997-1998 (right after the economic meltdown) and compare it directly with 2006-2007.

Any fool will see the obvious.

If they want to make a direct comparison between Tun Mahathir and the current administration's economic handling, they should take the average figures of 22 years of Tun Mahathir compared to the best after his departure time. Or, just take the figures right before Tun Mahathir stepped down. That is more justified.

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